The Year in Review 2020Annual Report and Financials Cover: Melissa Galloway and Windermere J'Obei W during the Grand Prix Special finishing with a score of 71.234. At Dressage by the Sea, Willinga Park Photo: Stephen Mowbray Contents 04 Chief Executive Report 17 Statistics 21 Awards 27 The Year in Review 47 Financial Summaries - Central and National Equestrian Centres 53 Audited Financials 68 Audit Report 71 ESNZ Officers / Staff EQUESTRIAN SPORTS NEW ZEALAND Annual Report 2020 3 CEO / Chair Report 2020 A year of challenge and flexibilty If anyone had told us 12 months ago that all sport in NZ – the ultimate in sporting nations - would be cancelled for months in 2020, that the 2020 Tokyo Olympics would be postponed and that the equestrian competition season ahead could be severely restricted, no-one would have believed it. Suffice to say, there is a lot about the 2019-20 year that has been challenging. There are still great things happening in equestrian sport though. Firstly we would like to acknowledge all of our members In the Dressage arena, the sensational Melissa Galloway and competitors, discipline board members, staff, posted some extraordinary scores competing in Australia officials, sponsors, volunteers, area officers and organising to re-ignite the Dressage Olympic bid. She continues to committees who make equestrian competition in New work on plans for Olympic selection depending on how the Zealand possible by investing time and resources to the next few months go. sport. This sport relies heavily on a combined effort from all parties and we appreciate the dedication and commitment shown year after year. In particular the need to be flexible Covid-19 and adapt to changing circumstances has been difficult. The year really has been defined by something far less exciting. Covid-19 presented us with a scenario none of us In celebration throughout 2019-2020 we honoured Sir had imagined. ESNZ’s role was to lead the equestrian sport Mark Todd in a number of ways as he announced his “final” response to lockdown, event cancellation and to try and retirement (his words not ours) and was revered for putting allay frustration of members. In addition, we watched the New Zealand on the equestrian map internationally. Sir very careful Olympic preparation by our equestrian team Mark’s dedication, humility, success, talent and wisdom will sent back to the drawing board. Months of planning for forever be a part of our story and will remain a record hard some events was postponed or cancelled and we grappled to emulate. We are honoured to have him walk among with advice from different Ministries that sometimes was us and we thank him for everything he has done and the unclear. legacy he leaves as he pursues other interests. Sir Mark’s career and contribution to NZ sport was celebrated at a Equestrianism is not only a competitive sport, it is a special NZ Olympic Committee Gala dinner, at the 2019 recreational activity for many, a job in equine support, a Landrover Horse of the Year Hall of Fame evening where business, and a lifestyle. In times like this, there is no “one- he was inducted into the ESNZ Hall of Fame and at the stop-shop” advice that works across the spectrum. ESNZ ESNZ AGA where he was made an honorary life member. staff worked hard to ensure the best advice for keeping people safe at all times was available and we were happy Blyth Tait also announced his retirement from international to seek further clarification throughout the lockdown to fill eventing in a ceremony at Horse of the Year. Blyth is a true gaps where members were unclear. We would like to say a legend of our NZ equestrian story and has proudly placed big thank you to all the members who helped and showed NZ on the front of many sports bulletins over the years. We extreme restraint and patience in what was, and may are pleased to have him home in NZ where he is training continue to be, a very difficult time. and course designing - both pursuits that will benefit equestrians across NZ in years to come. ESNZ has come out of the Covid-19 initial phase in better financial shape than many other sports. The pandemic The 2020 Hall of Fame inductees were an inspiration as swept into NZ in the latter part of the competition season they recounted their stories from the 1964 Olympics. The which meant the impact on our income was not as severe first ever New Zealand Showjumping team to attend an as it would have been in the lead up to the new season. Olympic Games - Bruce Hansen, Graeme Hansen, Charlie During April and May, our income reduced by 82% on Matthews and Adrian White – set sail for Tokyo on a ship in the same month last year. This improved to 44% less in 1964. The evening was filled with their stories via family and May and then improved again to a 22% reduction in June. friends who paid tribute to the team with pride. Figures since then show a retained 20% minimum drop in Ironically then it was the New Zealand Showjumping team income across the start of 2020-21 year. This is concerning. that were an international sensation this year as they blitzed their way through the Olympic qualifier securing a 2019 2020 Variance spot at the Tokyo Olympics and notching up their second $ $ $ % Nations Cup win in Abu Dhabi. Significant fundraising March 60,298 38,918 -21,380 -35.5% and profile events raised funds to support them and the April 55,912 9,935 -45,977 -82.2% team has been inspirational in Jumping circles as they rebuild their campaign for NZOC approval to compete at a May 43,140 23,970 -19,171 -44.4% delayed Olympics. June 63,565 49,158 -14,407 -22.7% 4 EQUESTRIAN SPORTS NEW ZEALAND Annual Report 2020 In order to counter the covid income drop ESNZ received The reduced HP funding recognised in the consolidated the wage subsidy and the extended wage subsidy. We cut statement of income is due to a reduction in income all travel and accommodation and reduced costs wherever recognised by way of expenditure. In 2018 we recognised we could. This has meant ESNZ is in a sustainable position funding for WEG and as 2019 is a non-championship year currently but, will have to monitor and analyse finances in HP terms, the income recognised is lower. In addition, carefully for the next year and beyond – depending on how HP funding works to a calendar year and therefore the long the covid situation continues. Cancellation of events remainder of the funding for the year (June to December and the covid effect on businesses involved in our sector $817k) sits on the balance sheet as income in advance at will have an effect on the sport in the coming seasons. We note 11. cannot rest on our laurels and need to plan and be flexible Expenditure decreased in line with revenue, by 15% with enough to adapt and react to changes. decreases being seen in employee related costs (2%), high If anything, the pandemic now offers sport an opportunity performance related costs (39%), and other operating to use the crisis as a catalyst for change, to think differently expenditure (9%), mainly through accommodation, meals and to embrace new ways of doing things that we might and travel (45%), and competition and event expenses not have thought possible before. ESNZ is welcoming (27%). A significant factor to these decreases was due this opportunity and will work with disciplines this year on to the Covid-19 pandemic during the last quarter of the transformational opportunities financial year. Cash generated from operations during the year was Overall Financial Result a contribution of $927k with investing activities being a net outflow of $495k resulting in an increase in cash ESNZ’s consolidated annual result is a surplus of $458,923 resources from June 2019 of $343k. It should be noted that for the year. This is 19.8% lower than the previous financial 87% ($2.2m) of these funds are controlled by the various year and can be explained by a 15% decrease in revenue disciplines. – some of which is due to Covid-19 affecting the end of our competition season. Income from funding, grants, and Below are the financial results for the different cost centres sponsorships decreased by 24% and operational revenue within the consolidated accounts and the results for the decreased by 5%. past five years. FINANCIAL PERFORMANCE 2019-20 2018-19 2017-18 2016-17 2015-16 Central 127,368 (15,716) 67,951 (63,099) (173,593) Dressage 58,221 20,215 50,348 (18,852) 18,507 Endurance (3,255) 7,734 (7,347) 4,292 (13,347) Eventing 13,351 36,778 (57,323) 1,575 33,165 Jumping 128,881 2,931 47,650 52,725 55,434 High Performance 37,525 148,254 63,656 135,919 41,843 NINEC Taupo- 142,732 398,974 348,445 1,392,907 212,003 SINEC McLeans Island (45,901) (26,904) (5,139) 14,101 303,239 Total 458,923 572,266 508,241 1,519,568 477,251 In 2017-18 the Central department of ESNZ borrowed $150,000 off the discipline reserves to fund a financial shortfall. 2019-20 was the final year of those loans and we can now advise they have all been repaid in full. The organisation is stronger together and the ESNZ board would like to acknowledge the relationship with the disciplines to ensure the whole organisation is well-run and sustainable.